Sam Bankman-Fried appeal denied as court backs 25-year sentence for FTX collapse

FTX’s co-founder Sam Bankman-Fried will stay in prison until 2044 after a federal appeals court upheld his fraud conviction on Friday, Reuters reported.

The decision was issued by the US Court of Appeals for the Second Circuit in Manhattan. Bankman-Fried, once a billionaire and one of the crypto industry’s most prominent figures, was convicted in 2023 on seven criminal charges related to FTX’s 2022 collapse.

Prosecutors alleged that he diverted $8 billion in customer funds, characterizing the misconduct as a massive fraud. Although Bankman-Fried pleaded not guilty and testified that he never stole customers’ money, the jury found him guilty on all counts.

In September 2024, the former CEO of FTX launched an appeal against his conviction, alleging that Judge Lewis Kaplan unfairly restricted his defense and favored the prosecutors.

At sentencing in March 2024, Kaplan said Bankman-Fried was aware that his conduct was wrongful and had merely underestimated the risk of being caught.

His appeal centered on claims that trial judge Lewis Kaplan improperly restricted evidence that could have supported his view that FTX had sufficient assets to honor customer withdrawals. Prosecutors argued that extensive evidence, including testimony from former senior executives, clearly established his guilt.

Those executives, who entered guilty pleas and cooperated with authorities, testified that Bankman-Fried directed the use of customer funds to cover losses at Alameda Research.

Bankman-Fried is seeking a presidential pardon after being convicted. The jailed former crypto executive has publicly expressed hope for clemency while repeatedly maintaining that his case was mishandled.